Cities100: Oslo - Green Procurement in the Construction Industry

Oslo is using public procurement to take the lead in the zero-emission construction vehicles and machinery market.

The Challenge

Sixty-two percent of Oslo’s greenhouse gas emissions come from transport, and more than 25% of that total is attributable to construction vehicles and machinery. By initiating the development of fossil fuel-free construction equipment, the city gets closer to its goal of reducing emissions by 50% by 2020 and accelerates the growth of a new market sub-sector.

The Solution

Oslo is now harnessing its purchasing power to spur innovation in zero-emission construction vehicles and machinery. While public procurement is commonly used by governments to encourage market development in certain sectors, this industry had received little attention in the past. To remedy this the city is running four pilot projects, run concurrently by public and private actors, to test the following solutions: fossil fuel-free demolition sites, fossil fuel-free construction sites, onsite locally produced renewable energy, and prototype electrical vehicles. The city acts as the initiator of product development and ensures solutions are deployable in larger markets. The results of the pilot projects will serve as guidelines for the public procurement of the vehicles and machinery, which will be initiated in 2018. Though this sector is quite specific and relatively small, this targeted procurement can have a major impact, and as such, the need for action in the area of construction vehicles and machinery to meet Oslo’s emissions reduction targets by 2020 is emphasized in the city’s Climate and Energy Strategy. Indeed, the full deployment of the project is estimated to account for 15% of the emissions reductions in the construction vehicles and machinery sub-sector.

Environmental Benefits – The pilot projects have the potential to cut direct emissions from construction by 400 tons of CO2.

Economic Benefits – Companies involved in the pilot projects for zero-emission construction vehicles and machinery have already received new orders for their products.

Health Benefits – Decrease in noise pollution due to the use of the zero-emission construction machinery has been an important feedback from the rollout. This will benefit workers and neighboring communities.

About Cities100

In its second year, Cities100 – presented by C40 Cities Climate Leadership Group (C40), Sustainia and Realdania – showcases leading solutions to urban climate challenges in ten sectors, ranging from solid waste management to transportation. For the first time, this year’s publication features solutions that address the nexus of climate change and social equity.

Available online and in print, Cities100 provides stakeholders an accessible format to explore achievable solutions for climate action in cities, and will be a useful tool for relevant groups ranging from impact investors and development organizations, to mayors and city governments.  You can access the full Cities100 2016 publication online here and read more about how may­ors will de­liver the aims of the Paris Agree­ment in a fore­ward by Anne Hidalgo, C40 Chair and Mayor of Paris, here.